WEBVTT 1 00:00:00.440 --> 00:00:05.080 You're listening to the John and Heidi Show Bonus Hour. If you miss any 2 00:00:05.080 --> 00:00:09.359 of the program, you can find a podcast at the bottom of the page 3 00:00:09.400 --> 00:00:13.519 at Johnny Radio dot com. Thank you for listening to The John and Heidi 4 00:00:13.560 --> 00:00:18.559 Show Bonus Hour on a Monday. Excited to visit with Brent Baker from Clients 5 00:00:18.600 --> 00:00:22.120 First Group coming up here in just a moment. Also later this hour, 6 00:00:22.199 --> 00:00:26.120 it is a movie Star Monday. I have Johnny Russo joining me from The 7 00:00:26.280 --> 00:00:29.920 Godfather. Oh yeah, you can have some fun stick around that's on the 8 00:00:29.920 --> 00:00:34.960 way. What a year with prices on everything going up, it's more important 9 00:00:35.000 --> 00:00:38.320 than ever to have a better credit card. Some people use a credit card 10 00:00:38.399 --> 00:00:41.719 that's not a very good one. At Better credit cards dot com, we 11 00:00:41.880 --> 00:00:46.159 offer a variety of credit card options to fit your needs. Whether you want 12 00:00:46.159 --> 00:00:49.640 a card to give you cash back or points and perks, or a credit 13 00:00:49.679 --> 00:00:53.280 card to help you build your credit, we probably have it ad Better credit 14 00:00:53.320 --> 00:00:57.399 Cards dot com. Give yourself a little credit Better credit Cards dot com. 15 00:00:57.439 --> 00:01:02.039 That's Better credit Cards dot com. Thanks for listening to the John and Heidi 16 00:01:02.159 --> 00:01:06.400 Show. We have Brent Baker joining us on this Monday, and we're going 17 00:01:06.439 --> 00:01:08.359 to be chatting with him about some really fun stuff. We like to do 18 00:01:08.400 --> 00:01:11.280 this. We try to do it every Monday if we can. Brent is 19 00:01:11.319 --> 00:01:15.280 with Client's First Group and Keller Williams Realty and Brent. First of all, 20 00:01:15.319 --> 00:01:19.000 how you doing, sir? Well, anytime that you're looking at the flowers 21 00:01:19.000 --> 00:01:22.400 and not pushing them up, it's a good day. That is a good 22 00:01:22.439 --> 00:01:25.760 day. And I got some information about what we're going to chat about today. 23 00:01:25.760 --> 00:01:30.280 I like this how to answer Buyer's ten most asked mortgage Questions. So 24 00:01:30.680 --> 00:01:34.920 this is probably something that comes up this year people asking mortgage questions. And 25 00:01:34.000 --> 00:01:37.519 I know you're not a mortgage guy, you're a realtor, but you work 26 00:01:37.560 --> 00:01:40.640 with people who are dealing with mortgages all the time. So what are some 27 00:01:40.680 --> 00:01:42.799 of the most popular things that people are asking about right now? Well, 28 00:01:42.840 --> 00:01:48.359 I think most people understand what a mortgage is unless you grew up in a 29 00:01:48.400 --> 00:01:52.879 household that has always rented. But a mortgage is really just a very long 30 00:01:53.079 --> 00:02:00.480 term loan. Yeah, you're typically talking fifteen thirty years in length, and 31 00:02:00.760 --> 00:02:02.640 this would be when people are buying a home. You know, that's the 32 00:02:02.840 --> 00:02:06.200 It's basically a loan for a home, is what a mortgage. Correct. 33 00:02:06.200 --> 00:02:10.199 A mortgage is nothing but a long term loan secured by a piece of property. 34 00:02:10.599 --> 00:02:15.439 Home very nice, And when it comes to figuring out how much can 35 00:02:15.520 --> 00:02:19.360 I afford when I'm buying a home and I'm getting a mortgage, there's got 36 00:02:19.360 --> 00:02:22.199 to be some sort of calculation, because you know, when I was looking, 37 00:02:22.599 --> 00:02:27.280 you weren't showing us the million dollar homes. We weren't looking for that. 38 00:02:27.560 --> 00:02:30.919 We couldn't afford that. But but how does how does a person know 39 00:02:30.120 --> 00:02:34.120 when it's time to figure out what should I be looking at for a mortgage? 40 00:02:35.039 --> 00:02:38.520 If you're even thinking about buying a home, the best thing you can 41 00:02:38.560 --> 00:02:45.840 do is reach out to a few mortgage professionals because there are certain things that 42 00:02:45.879 --> 00:02:50.039 are just simply required to get a mortgage. It's not like going down to 43 00:02:50.240 --> 00:02:53.800 a local car dealership and picking one out simply because you feel that you can 44 00:02:53.840 --> 00:03:00.000 afford that in your budget. Yeah, a mortgage is a heavily regulated thing, 45 00:03:00.280 --> 00:03:06.560 So all lenders have to check your credit, They have to check your 46 00:03:06.599 --> 00:03:12.080 debt to income ratios. Things like school loans so forth come into play. 47 00:03:13.360 --> 00:03:15.879 They have to look at what your ability is to repay that. Because this 48 00:03:16.000 --> 00:03:20.560 is a long term loan, therefore they have to go the extra mile. 49 00:03:21.120 --> 00:03:24.639 What are the most common types of mortgages? While the common terms are conventional, 50 00:03:24.680 --> 00:03:30.319 FHA VA, USDA, woral development, which are one and the same 51 00:03:30.400 --> 00:03:35.840 the USDA in wroral development, but the reality is behind the scenes it's a 52 00:03:35.879 --> 00:03:42.240 government back loan versus. Then we have fixed rate mortgages, typically referred to 53 00:03:42.240 --> 00:03:46.280 as a conventional. Then there are what are called arms adjustable rate mortgages, 54 00:03:46.960 --> 00:03:53.439 so that rate changes over time. Then we have the home equity loans otherwise 55 00:03:53.479 --> 00:03:58.360 known as he locks, and that is borrowing against the equity of home you 56 00:03:58.479 --> 00:04:02.319 already own. Then there are interest only loans. We don't really see those 57 00:04:02.439 --> 00:04:10.879 right now than jumbo loans. Those are for very large homes and are above 58 00:04:11.319 --> 00:04:15.600 a price point that changes occasionally. But jumbo loans, we don't see a 59 00:04:15.600 --> 00:04:19.360 lot of those. So what are the interest rates? And I suppose that 60 00:04:19.439 --> 00:04:24.240 kind of changes all the time, doesn't it It's bounced around a lot. 61 00:04:24.720 --> 00:04:30.959 And I always advise people to check not only for rate but also fees. 62 00:04:30.279 --> 00:04:34.959 You might find one lender with a what seems like a lot lower rate, 63 00:04:35.319 --> 00:04:40.920 but they may have higher fees, So there's always more than that but the 64 00:04:41.040 --> 00:04:44.759 rate has been bouncing around quite a bit in the last while. The thirty 65 00:04:44.839 --> 00:04:48.759 year fixed rate mortgage is at this time tied to the ten year treasury rate. 66 00:04:49.519 --> 00:04:56.079 For the arms and those types of loans, those are tied to the 67 00:04:56.120 --> 00:04:59.360 one year treasury So what are the things that make up a mortgage? What 68 00:04:59.399 --> 00:05:02.079 are the different to a mortgage. Well, a mortgage is going to include 69 00:05:02.319 --> 00:05:08.800 like your principal payment payment on the actual original dollar amount that you borrowed. 70 00:05:09.160 --> 00:05:14.879 There's interest on that money. The rate of return for the investor is a 71 00:05:14.920 --> 00:05:19.000 way to look at it. Typically, you're escrowing your real estate taxes and 72 00:05:19.040 --> 00:05:26.360 your homeowners insurance and what escrow does is allows you to spread those two expenses 73 00:05:26.480 --> 00:05:30.399 over the course of a year so that that payment is consistent throughout the year. 74 00:05:30.480 --> 00:05:33.079 Otherwise, twice a year you're going to have to run a nice big 75 00:05:33.160 --> 00:05:39.199 check to the state for count for taxes, and then the other would be 76 00:05:39.279 --> 00:05:46.680 to your insurance company. And so the other parts of those mortgages are your 77 00:05:46.720 --> 00:05:53.319 survey, your praisal, your loan origination feed, there's going to be recording 78 00:05:53.360 --> 00:05:59.360 fees and so forth through the county and state, and also just your background 79 00:05:59.439 --> 00:06:03.959 checks. Yeah, and then you have your basic down payment. If you 80 00:06:04.319 --> 00:06:09.199 have a typical mortgage, you're gonna have some money down, and then of 81 00:06:09.240 --> 00:06:13.000 course you're closing costs nice and we're going to stop right there. We'll pick 82 00:06:13.000 --> 00:06:15.720 this up next week and wrap things up with this list at that time. 83 00:06:16.040 --> 00:06:18.759 Brent, thank you so much for joining us. If people would like to 84 00:06:18.800 --> 00:06:23.519 maybe reach out to you and get some more information about this, or if 85 00:06:23.600 --> 00:06:26.600 they want a list a home, or if they want to maybe buy a 86 00:06:26.639 --> 00:06:28.920 home that's on the market, how do they get a hold of you. 87 00:06:29.120 --> 00:06:35.360 The number is six zero five three one zero zero two ninety seven or email 88 00:06:35.439 --> 00:06:41.839 me Brent Baker at katew dot com. Very nice. You can find him 89 00:06:41.879 --> 00:06:46.639 online as well through the website Clients FirstGroup dot com. Did you know you 90 00:06:46.680 --> 00:06:49.959 can allocate a percentage of your IRA to physical gold and silver With a tax 91 00:06:49.959 --> 00:06:54.800 free rollover, you can put your IRA back on the gold standard. Genesis 92 00:06:54.879 --> 00:06:59.560 Gold IRA is the only IRA that can hold physical precious metals. Call now 93 00:06:59.639 --> 00:07:02.079 for your free golden silver report and learn how to qualify for up to ten 94 00:07:02.160 --> 00:07:05.959 thousand dollars in free silver Genesis goold ira dot com. But like to help 95 00:07:05.959 --> 00:07:10.639 protect your IRA today with a simple phone goal. Learn more and get the 96 00:07:10.639 --> 00:07:15.639 phone number at Genesis goold ira dot com. That's Genesis, goold ira dot 97 00:07:15.639 --> 00:07:18.519 com. Time now for this Day in Sioux Falls History. Brought to you 98 00:07:18.560 --> 00:07:23.120 by the Sioux Falls Fund Page and Sunny ninety three point three. It was 99 00:07:23.160 --> 00:07:28.240 on this day in Sioux Falls History, tragedy strikes when city founder Josiah Phillips 100 00:07:28.360 --> 00:07:32.279 passes away suddenly at the age of forty five. Josiah Phillips had been with 101 00:07:32.319 --> 00:07:36.199 the first crew of speculators to lay claim to the town site of Sioux Falls 102 00:07:36.319 --> 00:07:41.160 in eighteen fifty seven, having partnered with the Western Town Company of Dubuque, 103 00:07:41.199 --> 00:07:44.399 Iowa, and making the trip to the majestic bend in the Big Sioux. 104 00:07:44.560 --> 00:07:48.199 Phillips remained here four years, aiding in every way possible in the formation of 105 00:07:48.199 --> 00:07:51.959 the new city, until the Civil War broke out and he felt duty bound 106 00:07:53.000 --> 00:07:57.319 to offer his services as a Union doctor and surgeon. Phillips served with distinction 107 00:07:57.399 --> 00:08:01.319 and even a company general to comes to Sherman's troops on their infamous March to 108 00:08:01.360 --> 00:08:05.079 the Sea, ending up all the way down in Atlanta, Georgia. Josiah 109 00:08:05.079 --> 00:08:09.240 Phillips would marry Hattie Phillips after the war and return to Sioux Falls in eighteen 110 00:08:09.279 --> 00:08:11.560 seventy. He still maintained his rights to the land that he had claimed back 111 00:08:11.560 --> 00:08:15.519 in eighteen fifty seven, and as an injury to his eye in the war 112 00:08:15.639 --> 00:08:20.079 made it difficult to practice medicine, Phillips took up the business of land speculating 113 00:08:20.079 --> 00:08:22.240 and real estate dealing. He was able to make a small fortune for him 114 00:08:22.240 --> 00:08:26.720 and his family, selling off his land piece by piece as new businesses and 115 00:08:26.839 --> 00:08:31.000 homes were created for new citizens. However, Phillips did not hoard his new 116 00:08:31.079 --> 00:08:33.399 found wealth. He was often the first in line to give to the needs 117 00:08:33.399 --> 00:08:39.320 of the small community of Sioux Falls. Schools, churches and organizations. Also 118 00:08:39.399 --> 00:08:43.840 events from the early days a part of their existence to Josiah Phillips, and 119 00:08:43.919 --> 00:08:46.399 on this day in eighteen eighty two, after two days of fighting off a 120 00:08:46.440 --> 00:08:50.360 fever and a deep cough, he passed away. Josiah Phillips left behind his 121 00:08:50.440 --> 00:08:54.159 wife, Hattie, and seven children, one of which he never even met, 122 00:08:54.200 --> 00:08:58.919 as Hattie was pregnant with that child when he died. This day in 123 00:08:58.960 --> 00:09:03.600 Sioux Falls History brought to you by Suit Falls Funpage dot Com and Sunny ninety 124 00:09:03.639 --> 00:09:07.200 three point three. 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Equity markets were 133 00:09:41.159 --> 00:09:46.480 able to advance Friday after a week of consolidation. The SMP five hundred moved 134 00:09:46.559 --> 00:09:48.679 up through the forty three hundred level to set a new twelvemonth high, and 135 00:09:48.720 --> 00:09:52.799 it may keep going higher. However, the move is not driven by any 136 00:09:52.799 --> 00:09:56.279 fundamental factor that can be pinned down, so the bottom could fall out of 137 00:09:56.279 --> 00:10:00.120 the market at any time. This week's risk is multifaceted and could be the 138 00:10:00.159 --> 00:10:03.159 difference between a summer rally and a quick reversal. Topping the list of market 139 00:10:03.200 --> 00:10:07.679 moving events is the FOMC meeting. They're not expected to hike rates, but 140 00:10:07.759 --> 00:10:11.279 they may surprise the market with its statement. The CPI is an other market 141 00:10:11.320 --> 00:10:15.279 moving event and it comes out ahead of the FOMC announcement. Whatever the market 142 00:10:15.320 --> 00:10:18.320 thinks will happen at the meeting could change given the CPI news. After that, 143 00:10:18.480 --> 00:10:22.240 it's the retail sales figure, which is due out Thursday. Retail sales 144 00:10:22.279 --> 00:10:26.799 are expected to rise year over year, but not enough to offset inflation. 145 00:10:26.919 --> 00:10:30.919 The takeaway is that demand is in decline, only we're paying more for what 146 00:10:30.960 --> 00:10:35.240 we get. You can get the insidetrack at market meminute dot com. Insurance 147 00:10:35.360 --> 00:10:37.759 chicken dot com wants to know how much are you paying for your insurance. 148 00:10:37.960 --> 00:10:41.919 I know it seems like a hassle to switch to a different company, but 149 00:10:41.960 --> 00:10:45.639 if you can save a few bucks bucks bucks, it's worth crossing the road. 150 00:10:45.679 --> 00:10:48.600 To insurance chicken dot com. 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